GM Moves to End Incentives

General Motors plans to end its successful "employee discounts for everyone" promotion next week and change its pricing strategy for 2006 models, The Wall Street Journal reported.

Instead of continuing rounds of discounting, the world's number one automaker will attempt to lower sticker prices, the WSJ said.

The moves are part of GM's effort to overhaul its North American auto operations, which lost $2.5 billion in the first half of 2005.

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GM's new strategy will rely on cutting base sticker prices for many models and extending no-haggle pricing rather than relying on its previous approach of keeping sticker prices high and then piling on $4,000 or more per vehicle in incentives, on average, the WSJ said.

A GM spokesman confirmed to the WSJ that the automaker will cut prices on many of its upcoming 2006 model-year vehicles.